Finance Minister Nicola Willis says the Government is meeting daily as global tensions triggered by the Iran conflict begin to place pressure on New Zealand’s fuel supplies and wider supply chains. While ministers insist there is no need for panic, signs of strain are emerging at the pump, with unleaded 91 reaching $3.15 at some stations and isolated reports of service stations temporarily running out of fuel as some motorists begin hoarding.
Speaking at a press conference on Monday, Willis outlined the Government’s three‑pillar response: supply chains, freight disruptions, and economic support.
Willis said officials are working closely with fuel importers under the national fuel plan, monitoring stock levels and preparing to intervene if needed. The main areas of concern include fuel, plastics, fertiliser and bitumen, all of which rely heavily on global shipping routes now affected by the conflict.
“We do anticipate working with fuel companies if needed to secure orders. There is a role for diplomacy here,” Willis said, noting that New Zealand may coordinate with partners such as Australia and Singapore to maintain supply.
New Zealand currently holds 32 days of petrol onshore, with another 25 days’ worth already en route. Thirteen fuel ships are heading toward the country, with three more preparing to depart.
The conflict has already forced some cargo to be rerouted. Willis confirmed that stock originally destined for Middle Eastern ports has required new food safety certifications to divert elsewhere. “Some stock on the water has been turned around,” she said, highlighting the fragility of global shipping lanes.
Fuel prices have climbed 45–50 cents per litre since the conflict began. While still below the 2022 peak following Russia’s invasion of Ukraine, Willis warned prices could rise further.
She dismissed calls for temporary fuel tax cuts, arguing they are not targeted and would undermine the Government’s principle of providing support that is “temporary, timely and targeted.”
Treasury modelling suggests inflation could rise to 3.7%, its current worst‑case scenario, if global pressures intensify.
Energy Minister Simon Watts has been in contact with counterparts in Japan, South Korea and Singapore. South Korea’s key message, Willis said, was to maintain export levels to discourage hoarding behaviour.
The Government will provide a public update on fuel supplies on Wednesday, with Willis emphasising that while the situation is evolving, New Zealand remains well‑positioned and there is no cause for panic buying.
